B is corrent because a manufacturing organization would require a portion of the salaries paid to be inventoried in the manufactured product. Therefore, proper classification of payroll transactions would be very important in order to properly determine the correct portion of salaries to be included in inventory.
A is incorrect because a retailing organization would directly expense all salaries and, thus, proper classification would not be of special emphasis in testing internal control.
C is incorrect because a service organization would directly expense all salaries and, thus, proper classification would not be of special emphasis in testing internal control.
D is incorrect because a wholesaling organization would directly expense all salaries. Therefore, proper classification of salaries would not be of special emphasis to the auditor.
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